BB&T Expands Florida Market Shares With BankAtlantic Acquisition
BB&T Corp. has reached an agreement to acquire BankAtlantic to accelerate the financial services provider's expansion in Southeast Florida.
Under the terms of the agreement, BB&T will acquire approximately $2.1 billion in loans and assume $3.3 billion in deposits for an estimated premium of $301 million above the net asset value of BankAtlantic at closing.
This represents a 9% deposit premium based on Sept. 30 balances.
However, the acquisition excludes all of BankAtlantic's nonperforming and other criticized assets identified as of Sept. 30. Additionally, no BankAtlantic obligations are being assumed in this transaction.
“The acquisition of BankAtlantic is accretive to earnings per share and comfortably exceeds our internal rate of return objective,” said Kelly King, chairman and CEO of BB&T, Winston-Salem, N.C.
BankAtlantic, based in Fort Lauderdale, Fla., has 78 branches in the Sunshine State that span from Miami to Port St. Lucie. With this acquisition, BB&T has brought in $3.3 billion in low-cost deposits and boosted its market share in the Miami metropolitan area eight spots from 14th to sixth.
“BB&T's community banking approach is a great fit with our client-focused model,” said Jarett Levan, CEO of BankAtlantic. “Our combined organization will assume a leadership position in the South Florida market.”
The board of directors for both companies has already approved the transaction, while federal and state regulators still need to endorse this acquisition.